Notes to Accounts of Shervani Industrial Syndicate Ltd.

Mar 31, 2018

1. Balance of personal account of Debtors, Creditors, Unsecured Loans, Loans and advances Security Deposits and other had not been confirmed and are subject to confirmation by the parties.

2. Previous year''s figures have been regrouped/reclassified and restated wherever necessary to correspond with the current year''s classification/ disclosure.

3. The Company has not received the required information from Suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been made.

4. "Ind AS 101(First-Time Adoption of Indian Accounting Standards) provides a suitable point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the opening Balance Sheet as per Ind AS as of 1^st April,2016 (the transition date) by:"

(i) recognizing all assets and liabilities whose recognition is required by Ind AS.

(ii) not recognizing items of assets or liabilities which are not permitted by Ind AS.

(iii) reclassifying items from previous Generally Accepted Accounting Principles(GAAP) to Ind AS as required Under Ind AS, and

(iv) applying Ind AS in measurement of recognized assets and liabilities.

5. EVENTS AFTER THE REPORTING PERIOD:

After the reporting date, the following dividends are proposed by the Board of Directors and have not been recognised as liabilities and there are no tax consequences.

---

Mar 31, 2015

1 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in general administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of acturial valuation.

2 In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

3 The useful life of fixed assets have been revised in accordance with Schedule II of the Companies Act, 2013. The assets whose useful life is already exhausted as on 01.04.2014, depreciation amounting to Rs. 10,87,044 has been adjusted to General Reserve.

Related Parties relationship as identified by the company and relied upon by the Auditors Following are the transactions with related parties as defined under Accounting Standared -18 issued by the Institute of Chartered Accountants of India

4 Contingent liabilities not provided for :

(a) Claims against the company not acknowledged as debts Amount indeterminate

(b) In respect of guarantee given by Company in favour of HDFC Bank Limited 1,00,00,000 1,00,00,000 on behalf of Shervani Hospitalities Limited, (an Associate Company) for credit facility extended to them

(c) In respect of guarantee given by Company in favour of Union Bank of India on 10,00,00,000 10,00,00,000 behalf of Omnitel Technologies Private Limited for credit facility extended to them

5 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act, 2006.

6 The figures of the previous year have been regrouped/rearranged wherever necessary.

---

Mar 31, 2014

1 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in general administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of actuarial valuation.

2 In view of uncertainty regarding availability of sufficient future taxable income, deferred lax assets arising out of timing difference of depreciation have not been considered in the accounts.

3 Contingent liabilities not provided for:

31.03.2014 31.03.2013 Rs. Rs.

(a) Claims against the Amount indeterminate company not acknowledged as debts

(b) In respect of guarantee given 1,00,00,000 1,00,00,000 by Company in favour of HDFC Bank Limited on behalf of Shervani Hospitalities Limited, (an Associate Company) for credit facility extended to them

(c) In respect of guarantee given 10,00,00,000 - by Company in favour of Union Bank of India on behalf of Omnitel Technologies Private Limited for credit facility extended to them

4 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

5 The figures of the previous year have been regrouped/rearranged wherever necessary.

---

Mar 31, 2013

1 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in general administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of actuarial valuation.

2 In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

3 Related Party Disclosures

Relationship A. Subsidiary Company Farco Foods Private Ltd.

B Associate Companies Shervani Sugar Syndicate Ltd.

Shervani Hospitalities Limited

Voungtronics India Private Limited .

C Key Management Personnel

Mr. S.l. Shervani Managing Director

Mr. Tahir Hasan Vice Chairman

and their relatives

Related Parties relationship as identified by the company and relied upon by the Auditors following are the transactions with related parties as defined under Accounting Standared -18 issued by the Institute of Chartered Accountants of India

4 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

5 The figures of the previous year have been regrouped/rearranged wherever necessary.

---

Mar 31, 2012

1 The Company has investment in 3,00,000 Equity Shares of Rs.10/- each, Preference Shares of Rs. 5,00,00,000, Unsecured Debentures of Rs. 5,00,00,000 and Loan of Rs. 19,55,64,000 in Shervani Sugar Syndicate Limited. The Company holds a provision of Rs. 4,00,00,000 for possible losses against said loan. Board for Industrial and Financial Reconstruction has sanctioned a Modified Rehabilitation Scheme for above Company on 14.09.2009. According to sanctioned scheme redemption of preference shares and repayment of Loans shall be made after rehabilitation period on interest free basis.

2 Due to Closure of manufacturing operations all the employees have been retrenched except few employees in General Administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of acturial valuation.

3 In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

4 Contingent liabilities not provided for:

Year ended Year ended 31.03.2012 31.03.2011 Rs. Rs.

(a) Claims against the company not acknowledged as debts Amount indeterminate

(b) In respect of guarantee given by Company in favour ot HDFC Bank Limited 1,00,00,000 1,00,00,000 on behalf of Shervani Hospitalities Limited, (an Associate Company) for credit facility extended to them

5 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

6 The figures of the previous year have been regrouped/rearranged wherever necessary.

---

Mar 31, 2010

1 Contingent liabilities not provided for: As at 31.03.2010 As at 31.03. 2009 Claims against the company not acknowledged as debts Amount indeterminate

In respect of guarantee given by Company in favour of HDFC Bank Limited on behalf of Shervani Hospitalities Ltd. (a Associates Company) for Credit Facility extended to them Rs. 100,00,000.

2 Current Liabilities - "Sundry Creditors/other Liabilities" shown in Schedule 11 include Rs.52816 payable to Directors and Loans & Advances shown in Schedule 10 include Rs.45475 recoverable from Director. (Previous Year payable amount Rs.86230 & Rs. 43614 respectively)

3 The Company has investment in 300,000 Equity Shares of Rs. 10/-, Preference Shares of Rs. 50,000,000 Unsecured Debentures of Rs. 50,000,000 and Loan of Rs. 135, 564,000 in Shervani Sugar Syndicate Limited. The Company holds a provision of Rs. 40,000,000 for possible losses against said loan, Board for Industrial and Financial Reconstruction has sanctioned a Modified Rehabilitation Scheme for above Company on 14.09.2009. According to sanctioned scheme redemption of preferene shares and repayment of Loans ahall be made after rehabilitation period on interest free basis.

4. Due to Closure of manufacturing operations all the employees have been retrenched except few employees in General Administration of the Company. The Company has decided to make provision for retirement benefits on actual basis as on date of Balance Sheet instead of acturial valuation.

5. In view of uncertainty regarding availability of sufficient future taxable income, deferred tax assets arising out of timing difference of depreciation have not been considered in the accounts.

6. Related Party disclosures. Relationship

A Subsidiary Company

Farco Foods Pvt. Limited

B. Associate Companies

Shervani Sugar Syndicate Limited

Shervani Hospitalities Limited

Youngtronics India Private Limited

C Key Management Personnel

Mr. S.I. Shervani Managing Director

Mr. Tahir Hasan Vice Chairman

Mr. Raju Verghese Director and their relatives

7 Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act 2006.

8 The figures of the previous year have been re grouped/rearranged wherever necessary.